Pharma's New Worldview - Transforming R&D through Emerging Markets

To date, research and development (R&D) within the pharmaceutical industry has been dominated by a developed-market perspective. But as emerging markets change Pharma's worldview, it's time for drugmakers to fundamentally rethink how R&D is done.

Over US$150 billion worth of products will lose patent protection over the next decade. And late stage failures and safety withdrawals have wiped out tens of billions more in forecasted sales revenue. Even though Pharma handily outperformed the Standard and Poor’s (S&P) 500 during the high-flying 1990s, the story has been the opposite for most of this decade. In 2005, the S&P 500 Pharma lost 3.4 percent of its value, while the overall S&P 500 gained nearly 5 percent.